2 Preliminary remarks (2) In times of web 2.0 customer evaluations on the Internet have a considerable influence on the sales chances of suppliers Fake of customer evaluations are obviously very common: probably % of all hotel evaluations are faked (Stiftung Warentest, 2010) Level of reviews which are fake and misleading has now reached epidemic levels (Kwikchex, 2011) Increase of civil disputes (in Germany, UK, etc.) Media hype about fakes since 2011 (e. g. ZDF/Wiso, WDR/Markt, Stern TV, Die Welt, Top Hotels etc.) Up to now no empiric research on how hoteliers estimate faked customer evaluations and how they deal with this 3 / 39 Agenda Initial position meaning of customer evaluations on review sites legal situation fake opportunities and effects Study results study profile dealing with customer evaluations in portals evaluations and dealing with fakes Recommendations for hoteliers for consumers 4 / 39

4 Meaning of customer evaluations on review sites (2) Among search engines evaluation portals often rank higher than hotel sites and, therefore, are easier found Influence of customer evaluations beyond the Internet (e. g. Tripadvisor s Zertifikat für Exzellenz or co-operation TrustYou and Dehoga (allocation of hotel stars) Sorting in evaluation portals: either pre-selection or active selection of the listing per evaluation Despite all fears of evaluations: majority is positive 7 / 39 Legal situation Fake evaluations on the Internet as act of unfair competition acc. to 4 no. 3, 3 UWG: legal situation clear, however, proof is difficult Often disputable: question of liability and behavioral duties ofthe platform operator Operator of an online hotel evaluation platform can not be obliged to review critical user comments and negative evaluations regarding their correctness prior to publication (Supreme Court Berlin). Interdiction of the evaluation of a hotel group is legally unenforceable. Also anonymous expressed opinions are under the protection of freedomof opinion and communication (OLG Hamburg). Accusation vs. Tripadvisor: publication of reviews without fake control British Kwikchex has objected against Tripadvisor at the UK Advertising Standards Authority and the US Federal Trade Commission and requested investigations into offences at the FBI (more than 3,000 obvious fake evaluations). Tripadvisor in UK indicted: after a red flag (fake suspicion) turnovers of the Riderside hotels about 75 % 8 / 39

5 Fake opportunities and effects Fakes wide-spread: British user Bellagio (32,300 evaluations in 7 years), 2 US users (56,000 comments), Niederländer (since 2005 more than 23,400 comments) Identification of fakes is difficult There is not only true or untrue. Correct, but unilateral pointed evaluations are hardly to be found, legally not doubtful but effective: irradiation effects and attribute dominances study of the Cornell university: people do not identify fakes (!), software support imperative (new Cornell software identifies 90 % of the fakes) Purchase of fakes by agencies and Internet users is possible Proof of residence does not prevent positive fakes Fakes can significantly warp evaluation results. Rule of thumb: in case of left-skewed or right-skewed distribution of the evaluation 20 % of extreme fakes change the average evaluation by nearly half a rating point! 9 / 39 The market price for fakes 5 star web reviews go by $5 New York Times, 19 th Aug / 39

17 Agenda Initial position meaning of customer evaluations on review sites legal situation fake opportunities and effects Study results study profile dealing with customer evaluations in portals evaluations and dealing with fakes Recommendations for hoteliers for consumers 33 / 39 Recommendations for hoteliers To sight customer evaluations in the relevant platforms (own and competition) regularly In case of obviously wrong evaluations: to contact platform and to request deletion. Installation of an own evaluation system (with support by software suppliers), but: hotel has already to be found Market research and quality management: preservation of customer feedback, motivation for improvement suggestions Utilization for bonus scheme To use positive evaluations in marketing material (increase of the conversion rate) Further research requirements: coherence evaluations and sales, finances, etc.? 34 / 39

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